Nigeria’s energy sector has received a major boost with latest approval by the national economic council, NEC, for the payment of legacy debts averaging 185billion naira owed gas producers.
The latest initiative by government which has been applauded by minister of state, petroleum resources, gas, ekperikpe ekpo aims to transform the gas supply value chain, and boost upstream gas development and gas-to-power generation in the country.
The minister while reacting to NEC’s approval, thanked the president for accelerating Nigeria decade of gas program implementation noted that the payment of the 185billion legacy debts to gas producers will ensure uninterrupted gas supply to GENCOS, and help boost power supply across Nigeria. “President Tinubu’s leadership in this area signals a new era of energy sector reform, with potential to transform Nigeria’s economy and deliver tangible benefits to citizens”.
The minister further disclosed that by prioritizing upstream gas development, the government also aims to stimulate job creation, and boost revenue. “The focus on gas-to-power generation aligns with efforts to improve electricity access and reliability which are crucial for industrial growth and improving quality of life for Nigerians.
Over the years Nigeria continues to suffer gas supply gaps to producers despite the country’s huge gas resource potential amidst persistent challenges which include but not limited to inadequate infrastructure, regulatory hurdles and financial constraints which has continued to impact growth in the sector.
Experts have severally noted that the accumulation of unpaid debts to gas producers will continue to impact on the sector, a development they say will inevitably hamper further investments and development in upstream gas activities until urgent steps are taken like the latest strategic moves by NEC to upscale upstream gas development.
